Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 52886-52887 [E9-24732]
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52886
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Valuing and Paying Benefits
AGENCY: Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
SUMMARY: Pension Benefit Guaranty
Corporation’s regulation on Benefits
Payable in Terminated Single-Employer
Plans prescribes interest assumptions
for valuing and paying certain benefits
under terminating single-employer
plans. This final rule amends the benefit
payments regulation to adopt interest
assumptions for plans with valuation
dates in November 2009. Interest
assumptions are also published on
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective November 1, 2009.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
These interest assumptions are found
in two PBGC regulations: the regulation
on Benefits Payable in Terminated
Single-Employer Plans (29 CFR part
Rate set
For plans with a
valuation date
On or after
*
193
*
11–1–09
3. In appendix C to part 4022, Rate Set
193, as set forth below, is added to the
table.
16:27 Oct 14, 2009
Jkt 220001
List of Subjects in 29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
■ In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE–EMPLOYER
PLANS
1. The authority citation for part 4022
continues to read as follows:
■
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
2. In appendix B to part 4022, Rate Set
193, as set forth below, is added to the
table.
■
APPENDIX B TO PART 4022—LUMP
SUM INTEREST RATES FOR PBGC
PAYMENTS
*
*
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4.00
2.25
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APPENDIX C TO PART 4022—LUMP
SUM INTEREST RATES FOR
PRIVATE-SECTOR PAYMENTS
*
VerDate Nov<24>2008
i1
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12–1–09
PBGC has determined that notice and
public comment on this amendment are
impracticable and contrary to the public
interest. This finding is based on the
need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect current
market conditions as accurately as
possible.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during November 2009,
PBGC finds that good cause exists for
making the assumptions set forth in this
amendment effective less than 30 days
after publication.
PBGC has determined that this action
is not a ‘‘significant regulatory action’’
under the criteria set forth in Executive
Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
■
jlentini on DSKJ8SOYB1PROD with RULES
4022) and the regulation on Allocation
of Assets in Single-Employer Plans (29
CFR part 4044). Assumptions under the
asset allocation regulation are updated
quarterly; assumptions under the benefit
payments regulation are updated
monthly. This final rule updates only
the assumptions under the benefit
payments regulation.
Two sets of interest assumptions are
prescribed under the benefit payments
regulation: (1) A set for PBGC to use to
determine whether a benefit is payable
as a lump sum and to determine lumpsum amounts to be paid by PBGC (found
in Appendix B to Part 4022), and (2) a
set for private-sector pension
practitioners to refer to if they wish to
use lump-sum interest rates determined
using PBGC’s historical methodology
(found in Appendix C to Part 4022).
This amendment (1) adds to
Appendix B to Part 4022 the interest
assumptions for PBGC to use for its own
lump-sum payments in plans with
valuation dates during November 2009,
and (2) adds to Appendix C to Part 4022
the interest assumptions for privatesector pension practitioners to refer to if
they wish to use lump-sum interest rates
determined using PBGC’s historical
methodology for valuation dates during
November 2009.
The interest assumptions that PBGC
will use for its own lump-sum payments
(set forth in Appendix B to part 4022)
will be 2.25 percent for the period
during which a benefit is in pay status
and 4.00 percent during any years
preceding the benefit’s placement in pay
status. In comparison with the interest
assumptions in effect for October 2009,
these interest assumptions represent a
decrease of 0.25 percent in the
immediate annuity rate and are
otherwise unchanged. For private-sector
payments, the interest assumptions (set
forth in Appendix C to part 4022) will
be the same as those used by PBGC for
determining and paying lump sums (set
forth in Appendix B to part 4022).
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52887
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations
For plans with a
valuation date
Rate set
On or after
*
Before
*
193
*
11–1–09
12–1–09
Issued in Washington, DC, on this 6th day
of October 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E9–24732 Filed 10–14–09; 8:45 am]
BILLING CODE 7709–01–P
Coast Guard
33 CFR Part 117
[Docket No. USCG–2009–0348]
RIN 1625–AA09
Drawbridge Operation Regulation; East
River, New York City, NY
Coast Guard, DHS.
Temporary final rule.
AGENCY:
The Coast Guard has
temporarily changed the drawbridge
operating regulations governing the
operation of the Roosevelt Island Bridge,
mile 6.4, across the East River at New
York City, New York. This temporary
final rule allows the Roosevelt Island
Bridge to remain in the closed position
for eleven months to facilitate a major
rehabilitation of the bridge.
DATES: This rule is effective October 15,
2009 through August 31, 2010.
ADDRESSES: Comments and related
materials received from the public, as
well as documents mentioned in this
preamble as being available in the
docket, are part of docket USCG–2009–
0348 and are available online by going
to https://www.regulations.gov, inserting
USCG–2009–0348 in the ‘‘Keyword’’
box, and then clicking ‘‘Search.’’ This
material is also available for inspection
or copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call or e-mail Mr. Joe Arca, Project
Officer, First Coast Guard District Bridge
Branch, 212–668–7165,
jlentini on DSKJ8SOYB1PROD with RULES
SUMMARY:
VerDate Nov<24>2008
16:27 Oct 14, 2009
2.25
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i2
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4.00
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4.00
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joe.m.arca@uscg.mil. If you have
questions on viewing the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
Regulatory Information
DEPARTMENT OF HOMELAND
SECURITY
ACTION:
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Jkt 220001
On August 13, 2009, we published a
notice of proposed rulemaking (NPRM)
entitled Drawbridge Operation
Regulation; East River, New York City,
NY, in the Federal Register (74 FR
40802). We received no comments on
the proposed rule. No public meeting
was requested, and none was held.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective in less than 30
days after publication in the Federal
Register. A delay or cancellation of this
ongoing bridge rehabilitation project is
not in the public interest and would
further disrupt the flow of vehicular and
maritime traffic. The rehabilitation
project is necessary to ensure the
continued safe and reliable operation of
the bridge.
Background and Purpose
The Roosevelt Island Bridge has a
vertical clearance of 40 feet at mean
high water, and 47 feet at mean low
water in the closed position. The
existing drawbridge operating
regulations listed at 33 CFR 117.781,
require the bridge to open on signal if
at least a two hour advance notice is
given.
The bridge owner, New York City
Department of Transportation, has
requested a temporary rule to facilitate
electrical and mechanical rehabilitation
at the Roosevelt Island Bridge.
Under this temporary final rule the
Roosevelt Island Bridge will remain in
the closed position from October 1, 2009
through August 31, 2010. Vessel traffic
may transit the East River utilizing the
alternate route around the other side of
the island.
Discussion of Comments and Changes
The Coast Guard received no
comment letters in response to the
notice of proposed rulemaking. As a
result, no changes have been made to
this temporary final rule.
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Regulatory Analyses
We developed this rule after
considering numerous statutes and
executive orders related to rulemaking.
Below we summarize our analyses
based on 13 of these statutes or
executive orders.
Regulatory Planning and Review
This rule is not a significant
regulatory action under section 3(f) of
Executive Order 12866, Regulatory
Planning and Review, and does not
require an assessment of potential costs
and benefits under section 6(a)(3) of that
Order. The Office of Management and
Budget has not reviewed it under that
Order. This conclusion is based upon
the fact that vessel traffic will still be
able to transit the East River using the
alternate route around the island.
Small Entities
Under the Regulatory Flexibility Act
(5 U.S.C. 601–612), we have considered
whether this rule would have a
significant economic impact on a
substantial number of small entities.
The term ‘‘small entities’’ comprises
small businesses, not-for-profit
organizations that are independently
owned and operated and are not
dominant in their fields, and
governmental jurisdictions with
populations of less than 50,000.
The Coast Guard certifies under 5
U.S.C. 605(b) that this rule will not have
a significant economic impact on a
substantial number of small entities.
This conclusion is based upon the fact
that vessel traffic will still be able to
transit the East River using the alternate
route round the island.
Assistance for Small Entities
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104–121),
in the NPRM we offered to assist small
entities in understanding the rule so
that they could better evaluate its effects
on them and participate in the
rulemaking process.
Collection of Information
This rule calls for no new collection
of information under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520).
E:\FR\FM\15OCR1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 198 (Thursday, October 15, 2009)]
[Rules and Regulations]
[Pages 52886-52887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-24732]
[[Page 52886]]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated Single-Employer Plans; Interest
Assumptions for Valuing and Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Pension Benefit Guaranty Corporation's regulation on Benefits
Payable in Terminated Single-Employer Plans prescribes interest
assumptions for valuing and paying certain benefits under terminating
single-employer plans. This final rule amends the benefit payments
regulation to adopt interest assumptions for plans with valuation dates
in November 2009. Interest assumptions are also published on PBGC's Web
site (https://www.pbgc.gov).
DATES: Effective November 1, 2009.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager,
Regulatory and Policy Division, Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4024.)
SUPPLEMENTARY INFORMATION: PBGC's regulations prescribe actuarial
assumptions--including interest assumptions--for valuing and paying
plan benefits of terminating single-employer plans covered by title IV
of the Employee Retirement Income Security Act of 1974. The interest
assumptions are intended to reflect current conditions in the financial
and annuity markets.
These interest assumptions are found in two PBGC regulations: the
regulation on Benefits Payable in Terminated Single-Employer Plans (29
CFR part 4022) and the regulation on Allocation of Assets in Single-
Employer Plans (29 CFR part 4044). Assumptions under the asset
allocation regulation are updated quarterly; assumptions under the
benefit payments regulation are updated monthly. This final rule
updates only the assumptions under the benefit payments regulation.
Two sets of interest assumptions are prescribed under the benefit
payments regulation: (1) A set for PBGC to use to determine whether a
benefit is payable as a lump sum and to determine lump-sum amounts to
be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for
private-sector pension practitioners to refer to if they wish to use
lump-sum interest rates determined using PBGC's historical methodology
(found in Appendix C to Part 4022).
This amendment (1) adds to Appendix B to Part 4022 the interest
assumptions for PBGC to use for its own lump-sum payments in plans with
valuation dates during November 2009, and (2) adds to Appendix C to
Part 4022 the interest assumptions for private-sector pension
practitioners to refer to if they wish to use lump-sum interest rates
determined using PBGC's historical methodology for valuation dates
during November 2009.
The interest assumptions that PBGC will use for its own lump-sum
payments (set forth in Appendix B to part 4022) will be 2.25 percent
for the period during which a benefit is in pay status and 4.00 percent
during any years preceding the benefit's placement in pay status. In
comparison with the interest assumptions in effect for October 2009,
these interest assumptions represent a decrease of 0.25 percent in the
immediate annuity rate and are otherwise unchanged. For private-sector
payments, the interest assumptions (set forth in Appendix C to part
4022) will be the same as those used by PBGC for determining and paying
lump sums (set forth in Appendix B to part 4022).
PBGC has determined that notice and public comment on this
amendment are impracticable and contrary to the public interest. This
finding is based on the need to determine and issue new interest
assumptions promptly so that the assumptions can reflect current market
conditions as accurately as possible.
Because of the need to provide immediate guidance for the valuation
and payment of benefits in plans with valuation dates during November
2009, PBGC finds that good cause exists for making the assumptions set
forth in this amendment effective less than 30 days after publication.
PBGC has determined that this action is not a ``significant
regulatory action'' under the criteria set forth in Executive Order
12866.
Because no general notice of proposed rulemaking is required for
this amendment, the Regulatory Flexibility Act of 1980 does not apply.
See 5 U.S.C. 601(2).
List of Subjects in 29 CFR Part 4022
Employee benefit plans, Pension insurance, Pensions, Reporting and
recordkeeping requirements.
0
In consideration of the foregoing, 29 CFR part 4022 is amended as
follows:
PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
0
1. The authority citation for part 4022 continues to read as follows:
Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and
1344.
0
2. In appendix B to part 4022, Rate Set 193, as set forth below, is
added to the table.
APPENDIX B TO PART 4022--LUMP SUM INTEREST RATES FOR PBGC PAYMENTS
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
193 11-1-09 12-1-09 2.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 193, as set forth below, is
added to the table.
APPENDIX C TO PART 4022--LUMP SUM INTEREST RATES FOR PRIVATE-SECTOR
PAYMENTS
* * * * *
[[Page 52887]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
193 11-1-09 12-1-09 2.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 6th day of October 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. E9-24732 Filed 10-14-09; 8:45 am]
BILLING CODE 7709-01-P
